News You Can Use of 29 November 2024

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NEWS U CAN USE

Nov 29, 2024

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The Week that was…

Nov to 29

Nov

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Indian Economy

• Government data showed that Gross Domestic Product (GDP) of the Indian economy at

constant (2011-12) prices witnessed a growth of 5.4% YoY in the second quarter of FY25.

In the Jul-Sep quarter of last year, the GDP growth rate was 8.1%. On the sectoral front,

the growth of Manufacturing sector decreased to 2.2% in Q2 of FY25 from 14.3% in same

quarter of previous fiscal year. However, growth of Agriculture, Livestock, Forestry &

Fishing increased to 3.5% in Q2 of FY25 compared to 1.7% growth in Q2 of FY24, while

Mining & Quarrying witnessed a negative growth of 0.1% in the same period.

• Government data showed that India’s fiscal deficit for the period from Apr to Oct of FY25

stood at Rs. 7.51 lakh crore or 46.5% of the Budget Estimates (BE) of the current fiscal.

India’s fiscal deficit was at 45.0% of the BE in the corresponding period of the previous

fiscal year. Total expenditure stood at Rs. 24.7 lakh crore or 51.3% of the BE as compared

to 53.2% of the BE in the corresponding period of the previous fiscal year.

• According to the Ministry of Commerce & Industry, the combined Index of Eight Core

Industries increased by 3.1% YoY in Oct 2024 as compared to 12.7% growth in Oct 2023.

The production of the Eight Core Industries remained mixed in Oct 2024 over the

corresponding month of last year, with coal witnessed the highest rate of growth with

7.8% followed by Refinery Products with 5.2% growth, while Crude Oil fell the most by

4.8% followed by Natural Gas by 1.2%.

• According to the government data, India's milk production witnessed an increase of 4%

YoY and reached a record 239.30 million tonnes in FY24 on better productivity.

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Domestic Equity Market Indices

Indices

29-Nov-24 1 Week Return YTD Return

BSE Sensex

79,802.79 0.87% 10.47%

Nifty 50

24,131.10 0.94% 11.04%

BSE Mid

-Cap 46,070.85 2.31% 25.06%

BSE Small

-Cap 55,199.86 4.92% 29.35%

Source: Refinitiv

Values as on Nov 29, 2024

• Domestic equity markets rose for the

second consecutive week as key

benchmark indices BSE Sensex and

Nifty 50 rose 0.87% and 0.94%,

respectively. The rally was broad-based

as the mid-cap segment and the small-

cap segment both closed the week in

green.

• Domestic equity markets rose after the

Maharashtra state's current coalition

government, led by the ruling party at

the Centre, achieved a notable triumph

in the state assembly election which

raised expectations for an increased

government spending and policy

continuity with emphasis on

infrastructure and capex. However,

gains were limited due to uncertainty

over the Federal Reserve's interest rate

path due to expectations of high

inflation in Nov 2024.

Ratios

BSE Sensex

Nifty 50 BSE Mid Cap

BSE Small

Cap

P/E

22.79 22.21 39.50 33.14

P/B

4.04 3.60 4.68 3.82

Dividend Yield

1.15 1.27 0.74 0.60

Source: NSE, BSE

Values as on Nov 29, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

25-Nov-24 1,930 883 2.19

26-Nov-24 1,578 1,188 1.33

27-Nov-24 1,893 862 2.20

28-Nov-24 1,477 1,294 1.14

29-Nov-24 1,752 1,034 1.69

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

BSE Auto

52,897.87 -0.50% -1.20%

BSE Bankex

59,298.07 1.70% 1.08%

BSE CD

62,469.19 0.71% 2.99%

BSE CG

70,700.26 4.87% 2.31%

BSE FMCG

21,213.42 2.09% -2.08%

BSE HC

43,665.51 1.62% -0.57%

BSE IT

42,783.48 -0.15% 5.83%

BSE Metal

30,536.66 1.06% -2.38%

BSE Oil & Gas

26,812.75 4.24% -2.35%

Source:BSE

Values as on Nov 29, 2024

• On the BSE sectoral front, BSE capital goods

and PSU surged 4.87% and 3.70%, respectively,

driven by an optimistic outlook for the sectors

on the back of hopes of a capex push following

a remarkable victory of current coalition

government in Maharashtra led by the ruling

party at the Centre in the assembly election.

Indian Derivatives Market Review

• Nifty Dec 2024 Futures stood at 24,304.15, a premium of 173.05 points above the spot

closing of 24,131.10.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.

1,581.54 lakh crore as against Rs. 1,168.47 lakh crore for the week to Nov 22.

• The Put-Call ratio stood at 0.86 compared with the previous week’s close of 0.78.

• The Nifty Put-Call ratio stood at 1.08 compared with the previous week’s close of 1.19.

Indian Equity Market (contd.)

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6.65

6.70

6.75

6.80

6.85

25-Nov 26-Nov 27-Nov 28-Nov 29-Nov

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.75 6.73 6.44 6.49

91 Day T-Bill

6.49 6.48 6.52 6.90

07.06% 2028, (5 Yr GOI)

6.68 6.77 6.74 7.06

06.79% 2034, (10 Yr GOI)

6.74 6.85 6.82 7.07

Source: Refinitiv Values as on Nov 29, 2024

• Bond yields fell during the week

following the weaker-than-expected

domestic GDP growth data for the

second quarter of FY25, which may pave

the way for an earlier rate cut by the RBI.

Gains were extended following an ease in

U.S. Treasury yields after the newly

elected U.S. President told that he will

nominate a prominent fund manager as

Treasury secretary, who is seen a fiscal

conservative and will likely to want to

keep a leash on U.S. deficits.

• Yield on the 10-year benchmark paper

(6.79% GS 2034) fell by 11 bps to close at

6.74% from the previous week’s close of

6.85%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

decreased to $656.58 billion for the

week ended Nov 22, 2024 compared with

$657.89 billion a week earlier.

Domestic Debt Market

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-15

-10

-5

6.00

6.30

6.60

6.90

7.20

3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs

India Yield Curve Shift (%) (W-o-W)

Change in bps 29-Nov-24 22-Nov-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 6.83 7.61 78

3 Year 6.83 7.42 59

5 Year 6.82 7.36 54

10 Year 6.86 7.23 37

Source: Refinitiv

Values as on Nov 29, 2024

• Yields on gilt fell between 5 to 11 bps across the

maturities, barring 1 & 19 year papers that were

unchanged.

• Corporate bond yields fell up to 17 bps across the

curve, barring 1 year paper that was ucnhanged.

• Difference in spread between AAA corporate bond

and gilt contracted up to 12 bps across the

segments, barring 2 & 5 year papers that expanded

by 5 & 2 bps, respectively, while 1, 3 & 4 year papers

remained steady.

Domestic Debt Market (Spread Analysis)

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• SEBI has introduced new valuation metrics for repo transactions in order to have uniformity

in valuation methodology of all money market and debt instruments and to address the

concerns of unintended regulatory arbitrage that may arise due to different valuation

methodology adopted. The regulator has decided that the valuation of repurchase (repo)

transactions including TREPS with tenor of upto 30 days shall also be valued at mark to

market basis.

• The Cabinet Committee on Economic Affairs has approved the PAN 2.0 Project for the

Income Tax Department with a financial outlay of Rs. 1,435 crore. This initiative will provide

free upgrades to existing PAN cards, including the addition of a QR code, enhancing digital

taxpayer services. PAN 2.0 Project is an e-Governance project for re-engineering the

business processes of taxpayer registration services through technology driven

transformation of PAN/TAN services for enhanced digital experience of the taxpayers.

• According to reports, the government is thinking of lowering the weight of food items in

the Consumer Price Index (CPI) basket to address inflation concerns. The action is in

response to data from the 2022–23 Household Consumption Expenditure Survey, which

showed a decrease in household food expenditures. Chief Economic Adviser cited volatile

food prices as a primary driver of inflation spikes. Removing highly volatile commodities like

tomatoes, onions, and potatoes could reportedly lower retail inflation to 4%.

Regulatory Updates in India

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• According to MoSPI Secretary, the government is considering changing the base year for

computation of the GDP to 2022-23 in Feb 2026 to reflect an accurate picture of the

economy. This revision, first in over ten years, will incorporate new sectors and

consumption patterns, with an advisory committee expected to complete the task by early

2026.

• India and the U.K. are collaborating on infrastructure initiatives, emphasizing the

development of roads, rapid transit systems, and renewable energy sources. This

partnership seeks to draw U.K. investment and expertise to bolster India's economic

growth, with the intention of pinpointing three specific projects by Mar 2024. Establishing

trust among U.K. companies, which may have reservations due to previous difficulties, is

essential for the success of this collaboration.

• According to the chairman of the Central Board of Indirect Taxes and Customs, India is

actively negotiating the signing of mutual recognition agreements with the customs

authorities of roughly thirty nations. Mutual recognition agreements help ease overseas

trade by avoiding dual certifications. By following a single regulation, it simplifies

compliance requirements, lowers compliance costs, and improves trade opportunities.

Regulatory Updates in India (contd..)

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• According to the Commerce Department, U.S. personal consumption expenditures (PCE)

price index rose by 0.2% in Oct 2024, matching the uptick seen in Sep 2024 as well as

economists' estimates. The monthly increase in the PCE price index came as prices for

services climbed by 0.4%, more than offsetting a 0.1% dip in prices for goods.

• According to the Commerce Department, U.S. gross domestic product surged by 2.8% in

the third quarter of 2024, unchanged versus the "advance" estimate issued last month. The

unrevised reading matched expectations.

• According to Eurostat, eurozone’s harmonized index of consumer prices, or HICP, rose

2.3% YoY following a 2.0% increase in Oct 2024. Core inflation, which excludes prices of

food, energy and alcohol and tobacco, was steady at 2.7%. Economists had forecast a score

of 2.8%.

• According to the Federal Employment Agency, Germany’s jobless rate came in at 6.1% in

Nov 2024, the same as in Sep and Oct 2024. Also, the rate matched expectations.

• According to Destatis, Germany’s retail sales decreased by a real 1.5% MoM in Oct 2024, a

sharper-than-expected fall of 0.5%.

• According to the National Bureau of Statistics, China's industrial profits experienced a YoY

decline of 10% in Oct 2024. This decline follows a significant drop of 27.1% recorded in Sep

2024. The slight improvement observed in Oct 2024 can be attributed, in part, to a low

base for comparison.

Global News/Economy

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Global Indices

Indices

29-Nov-24

1-Week

Return

YTD

Return

Russell 3000 3,149.14 1.07% 31.06%

Nasdaq 100 20,930.37 0.74% 24.39%

FTSE 100 8,287.30 0.31% 7.16%

DAX Index 19,626.45 1.57% 17.16%

Nikkei Average 38,208.03 -0.20% 14.18%

Straits Times 3,739.29 -0.18% 15.40%

Source: Refinitiv Value as on Nov 29, 2024

U.S.

• U.S. equity markets rose as several

investors sought to acquire stocks at

comparatively lower prices after the

decline observed on 27th Nov, 2024. The

sector experienced a surge as

manufacturers of semiconductor

equipment rallied following a report

indicating that the former U.S. President's

administration is contemplating

restrictions on the sale of semiconductor

equipment and AI memory chips to China.

Europe

• European equity markets mostly rose amid anticipations of additional rate reductions by

central banks, and there are indications of a rise in inflation within the eurozone. Investors

are also analyzing the French GDP figures, along with Germany's retail sales and

unemployment data.

Asia

• Asian equity markets closed on a mixed note. The market fell as the Japanese markets are

experiencing pressure due to expectations of a Bank of Japan interest rate increase, which

has resulted in a stronger Japanese yen.

Global Equity Markets

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4.10

4.15

4.20

4.25

4.30

4.35

25-Nov 26-Nov 27-Nov 29-Nov

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

• Yields on the 10-year U.S. Treasury fell

by 22 bps to close at 4.19% from the

previous week’s close of 4.41%.

• U.S. Treasury prices rose as investors

anticipated a less alarming U.S. fiscal

outlook following the nomination of a

hedge fund as U.S. Treasury Secretary

by the new U.S. President.

• Further, prices rose as investors awaited

fresh data that would offer further

clues about the U.S. Federal Reserve

policy and continued to assess how the

policies of the new U.S. President’s

administration will affect the economy

next year.

Global Debt (U.S.)

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7.00

8.00

9.00

10.00

11.00

12.00

29-Oct-24 14-Nov-24

Global Commodity Movement

Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)

Global Commodity Prices

Rebased to 10

Source: Refinitiv

Performance of various commodities

Commodities

Last Closing* 1-Week Ago

Brent Crude($/Barrel)

75.45 77.39

Gold ($/Oz)

2,653.55 2,712.55

Gold (Rs/10 gm)

76,400 77,518

Silver ($/Oz)

30.60 31.31

Silver (Rs/Kg)

89,351 90,756

Source: Refinitiv *Value as on Nov

29, 2024

Gold

• Gold prices fell as investors booked profits

following the recent rally. However, losses

were restricted following persisting

tensions in the Middle East, and the

ongoing war between Russia and Ukraine

pushed up the yellow metal's safe-haven

appeal.

Brent Crude

• Brent Crude Brent crude oil prices fell as a

report showed that Israel and Hezbollah

are likely to reach a cease-fire agreement.

Baltic Dry Index

• The index fell over the week due to

sluggish capesize and panamax activities.

Commodities Market

29-Nov-24

-2.51%

-2.18%

-2.27%

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9.40

9.60

9.80

10.00

10.20

10.40

29-Oct-24 14-Nov-24

USD GBP Euro JPY

Source: Refinitiv

Currency Prices ( in terms of INR)

Rebased to 10

Currency Movement

Movement of Rupee vs Other Currencies

Currency

Last Closing* 1-Wk Ago

US Dollar

84.50 84.50

Pound Sterling

107.46 106.21

EURO

89.36 88.45

100 Yen

56.31 54.57

Source: Refinitiv Figures in INR , *Value as on Nov 29, 2024

Rupee

• The Indian rupee in the spot trade fell against

the U.S. dollar due to declines in other Asian

peers.

Euro

• The euro rose against the greenback after a

strong run on the new U.S. President's Treasury

pick.

Pound

• Pound rose against the U.S. dollar after the

greenback gave up some of its post-election

gains.

• Yen rose against the U.S. dollar due to an

unexpected increase in Tokyo inflation rates,

leading to speculation of a Bank of Japan rate

hike.

Currencies Markets

29-Nov-24

3.19%

1.03%

1.17%

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The Week that was…

Nov to 29

Nov

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The Week that was (Nov 25 – Nov 29)

Date Events

Present

Value

Monday,

November 25, 2024

• Japan Leading Economic Index (Sep)

109.1 109.4

• Germany IFO

– Current Assessment (Nov) 84.3 85.7

• Germany IFO

– Business Climate (Nov) 85.70 86.50

Tuesday,

November 26, 2024

• U.S Housing Price Index (MoM) (Sep)

0.70% 0.40%

• U.S. New Home Sales Change (MoM) (Oct)

-17.30% 7.00%

• U.K. BRC Shop Price Index (YoY) (Nov)

-0.60% -0.80%

Wednesday,

November 27, 2024

• Germany GfK Consumer Confidence Survey (Dec)

-23.3 -18.4

• U.S. Gross Domestic Product Annualized (Q3) Prel

2.80% 2.80%

• U.S. Core Personal Consumption Expenditures

- Price Index (YoY) (Oct) 2.80% 2.70%

• Japan Foreign Investment in Japan Stocks (Nov 22)

¥-446B ¥123.5B

Thursday,

November 28, 2024

• Eurozone Consumer Confidence (Nov)

-13.70 -12.40

• Germany Consumer Price Index (MoM) (Nov) Prel

-0.20% 0.40%

Friday,

November 29, 2024

• India GDP Growth Rate (YoY) (Q2FY25)

5.40% 6.70%

• Germany Retail Sales (YoY) (Oct)

1.00% 1.40%

• Germany Unemployment Change (Nov)

7K 27K

• Eurozone Harmonized Index of Consumer Prices (YoY) (Nov) Prel

2.30% 2.00%

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The Week Ahead

Dec to 06

Dec

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The Week Ahead

Day Event

Monday,

Dec 02, 2024

• HSBC Manufacturing PMI Final (Nov)

• China Caixin Manufacturing PMI (Nov)

• U.S. ISM Manufacturing PMI (Nov)

• Eurozone Sentix Investor Confidence (Dec)

Tuesday,

Dec 03, 2024

• U.K. BRC Like-For-Like Retail Sales (YoY) (Nov)

• U.S. JOLTS Job Openings (Oct)

Wednesday,

Dec 04, 2024

• HSBC Services PMI Final (Nov)

• China Caixin Services PMI (Nov)

• U.S. ADP Employment Change (Nov)

• U.S. ISM Services PMI (Nov)

• Eurozone Producer Price Index (YoY) (Oct)

Thursday,

Dec 05, 2024

• Germany Factory Orders (YoY) (Oct)

• Eurozone Retail Sales (YoY) (Oct)

• U.S. Initial Jobless Claims (Nov 29)

Friday,

Dec 06, 2024

• Reserve Bank of India Interest Rate Decision

• Eurozone Gross Domestic Product (QoQ) (Q3)

• U.S. Nonfarm Payrolls (Nov)

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The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and

markets which have been obtained from independent third party sources and which are deemed to be reliable. The information provided cannot be

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